2014/SOM2/EGILAT/002 Agenda: I E APEC Secretariat Report on Key Developments Purpose: Information Submitted by: APEC Secretariat 5 th Experts Group on Illegal Logging and Associated Trade Meeting Qingdao, China 6-9 May 2014
APEC Secretariat Report on Key Developments February 2014 Contents 1. APEC 2014 Priorities (2) 2. Key Outcomes of Senior Officials and Committee Meetings (2) - Second Senior Officials Meeting - Committee of Trade and Investment (CTI) - Economic Committee (EC) - Budget and Management Committee (BMC) - APEC Business Advisory Council (ABAC) 3. Developments within the Secretariat and Policy Support Unit (5) - Key Staff Movements and Appointments - Project Management Unit (PMU) - Policy Support Unit (PSU) - Communications and Public Affairs - APEC Technical Assistance and Training Facility 1
APEC Secretariat Report on Key Developments May 2014 1. APEC 2014 PRIORITIES In 2014, APEC s theme is Shaping the Future through Asia-Pacific Partnership. The priority areas include: Advancing regional economic integration; Promoting innovative development, economic reform and growth; and Strengthening comprehensive connectivity and infrastructure development. 2. KEY OUTCOMES OF SENIOR OFFICIALS AND COMMITTEE MEETINGS First Senior Officials Meeting Ningbo, China 27-28 February 2014 Under the priority area of Advancing Regional Economic Integration, SOM affirmed initiatives to strengthen regional economic cooperation by advancing the Free Trade Area of the Asia-Pacific (FTAAP) process through a CTI-established FotC; support for a strong and firm signal to the multilateral trading system; and agreement to establish a RTAs/FTAs information sharing mechanism. The Meeting also had fruitful discussions on global value chains, supply chains, ECOTECH and capacity building. Under the priority area of Promoting Innovative Development, Economic Reform and Growth, member economies supported proposals aimed at tangible outcomes around economic reform, new economy, innovative growth, inclusive support and urbanisation. Work would also be done to explore new growth areas, reform and innovation by promoting information sharing, policy dialogue, capacity building and practical cooperation. Discussions on structural reform, regulatory coherence, green economy, blue economy, internet economy, food security, SMEs, anticorruption, women, health, sustainable energy, environment, urbanization, forestry and disaster management would be included in the work program for the year. Under the third priority of Strengthening Comprehensive Connectivity and Infrastructure Development, SOM endorsed a draft outline of the APEC Blueprint on Connectivity and the Workplan to Develop the Blueprint, and the establishment of a FotC on Connectivity. The FotC on Connectivity had conducted substantive discussions on ways and means to facilitate infrastructure financing, strengthen public-private partnership, and promote institutional connectivity and cooperation on cross-border education and travel facilitation among other issues. Committee on Trade and Investment (CTI) An overview of the work and achievements of the APEC Committee on Trade and Investment (CTI) and its 11 sub-fora and industry dialogues in 2013 can be found in the 2013 CTI Annual Report to Ministers. At its first meeting for 2014 in Ningbo, China from 24-25 February, CTI discussed and agreed on a work program that centred around five key areas that would contribute to APEC 2014 Priorities; namely: support for the multilateral trading system/world Trade Organisation (WTO); advancing regional economic integration (REI); strengthening connectivity and infrastructure development; expanding regulatory cooperation and advancing regulatory coherence; and contributions to APEC growth strategy and cross-cutting mandates. 2
CTI developed work plans in three areas: strengthening REI and advancing Free Trade Area of the Asia-Pacific (FTAAP); next generation trade and investment issues (NGeTI) and supply-chain connectivity through the Friends of the Chair (FoTC) groups for these three areas. The main outcomes from the meeting can be found in the CTI Chair s Report (Document 2014/SOM1/037). The CTI will next meet in Qingdao, China from 10-11 May to progress its work program. Several CTI-related events have been scheduled around the meeting. These include: 6-7 May: APEC Capacity Building Workshop on Preparing for FTA Negotiations: Research, Analysis, Consultation, Development of Negotiating Positions and Team Building 7 May: 3 rd APEC Regulatory Cooperation Advancement Mechanism (ARCAM) Dialogue on Electric Vehicle Standards 8 May: APEC Dialogue on Information Sharing on RTAs/FTAs in the Asia-Pacific Region 9 May: APEC Capacity Building Workshop on Global Data Standards 12 May : APEC Public-Private Dialogue on Building Asia Pacific Partnership through Global Value Chains Collaboration Economic Committee (EC) The first EC meeting, held in Ningbo, China, in February 2014 included two policy discussions on Ease of Doing Business and State of the Regional Economy and Its Policy Implications. The EC discussed the APEC New Strategy on Structural Reform (ANSSR), including the ANSSR mid-term progress report and various on-going capacity building activities to assist member economies with implementation of their ANSSR plans. The EC also conducted a 2014 APEC Economic Policy Report (AEPR) planning session. This year s topic is Good Regulatory Practices. The EC considered the work plans of the Competition Policy and Law Group (CPLG) and its five FotCs including: competition policy, regulatory reform, corporate law and governance, public sector governance and ease of doing business. The next EC meeting will be held in Beijing, China on the margins of SOM3, and will be accompanied by several workshops. SOM Steering Committee on ECOTECH (SCE) The SCE met in Ningbo, China on 26 February 2014 and was preceded by the annual SCE-COW (Committee of the Whole) Meeting on 25 February. The matters considered at the meetings included: reviewing and agreeing terms of reference for the next two years; commencing a review of the ECOTECH Medium-term Priorities by undertaking a survey of developing economy members, with a view to finalising the revised priorities by SCE3; amending the fora annual workplan template to include a section covering capacity building activities; noting progress on the conduct of the 2014 independent assessments on the Human Resource Development Working Group; Health Working Group; Tourism Working Group and the Mining Task Force; and receiving the APEC Secretariat Executive Director s report on the Alignment of SCE Fora Work Plans with APEC s Overall Vision and Objectives. The next SCE meeting will be held in the margins of SOM2 in Qingdao, China on 11 May 2014. Budget and Management Committee (BMC) In the first quarter of 2014, the Secretariat received a total of US$3.8 million in voluntary 3
contributions for APEC projects from four Member Economies, including: APEC Support Fund (ASF) (General Fund): A$1,500,000 (equivalent to US$1,312,950) from Australia; ASF Energy Efficiency and Low-Carbon Measures Sub-fund: JPY230,248,000 (equivalent to US$2,244,133) from Japan; and ASF Supply Chain Connectivity Sub-fund: US$150,000 from Hong Kong, China; and US$100,000 from Singapore. During the same period, the Secretariat received fixed members contributions for 2014 totaling S$2,868,700 and US$411,600 to the Administrative Account and Operational Account respectively from 12 Member Economies. BMC1 The BMC held its first meeting of 2014 on 23 February in Ningbo, China. BMC supported and noted the establishment of the new ASF Sub-fund on Supply Chain Connectivity. It also endorsed the aspirational target of voluntary contributions of US$6.3 million for 2014 computed by the Secretariat and the cap on the value of project funding for disbursement this year. Noting the general need for further untied APEC project funding to address the funding availability issue identified, BMC tasked the Secretariat to start the process of engaging member economies individually to garner their support in making voluntary contributions for APEC project funding. The Executive Director of the Secretariat has started the process of approaching member economies informally for advice on the possible approaches which may work on an economy-by-economy basis for voluntary contributions. The next BMC meeting will be held in the Secretariat in Singapore in the week starting on 21 July 2014 before SOM3. APEC Business Advisory Council (ABAC) First ABAC Meeting ABAC held its first meeting of the year in Auckland, New Zealand (Feb. 11-14). ABAC adopted its Work Plan for 2014, which identified Regional Economic Integration as the overarching framework. In 2014, the work of ABAC will focus on strengthening connectivity and infrastructure development in addition to promoting realization of an FTAAP. An ABAC-SOM Dialogue was held on 12 February 2014, the topics of the Dialogue were aligned with APEC 2014 priorities, namely: Advancing Regional Economic Integration Promoting Innovative Development, Economic Reform and Growth Strengthening Comprehensive Connectivity and Infrastructure Second ABAC Meeting ABAC held its second meeting of the year in Santiago de Chile from May 4th to 7th. During the plenary, ABAC members heard an analysis of the regional economic outlook, how APEC can help the World Trade Organization reduce trade barriers and identified pathways to a Free Trade Area of the Asia-Pacific to improve market access and export growth. The need for greater economic reform was a further point of emphasis. Additionally, APEC Secretariat provided an update to ABAC members on the APEC agenda, including joint work to move towards negotiations for a Free Trade Area of the Asia-Pacific (FTAAP). During the meeting ABAC working groups took stock of progress such as: the drafting of a Letter to the APEC Ministers Responsible Trade (MRT), whom will gather in Qingdao on 17-18 May, updates on the Asia-Pacific Financial Forum (APFF), the Asia-Pacific Infrastructure Partnership (APIP), ABAC Enablers of Infrastructure Investment Checklist, and Public-Private Partnership on Food Security (PPFS). As part of the meetings, Chilean President Michelle Bachelet addressed ABAC members under the theme The Pacific-Atlantic Dialogue and the Trade & Investment Opportunities in Latin America. 4
ABAC will hold two more meetings in 2014: Second ABAC Meeting 4-7 May 2014 Santiago, Chile Third ABAC Meeting 7-10 July 2014 Seattle, United States Fourth ABAC Meeting 5-8 October 2014 Beijing, China More information on ABAC can be found at: http://www.apec.org/groups/other-groups/apec- Business-Advisory-Council.aspx. 3. DEVELOPMENTS WITHIN THE SECRETARIAT AND POLICY SUPPORT UNIT Key Staff Movements and Appointments Departures since February 2014 Name Designation Economy Mr Tu Anh Tuan Program Director Viet Nam Ms Nadira Mailewa Program Director Australia Ms Margarette Rose Program Executive - Romero Ms Lindy Ong Receptionist - Mr Adam Hunt Project Development Specialist - Arrivals since February 2014 Name Designation Economy Ms Irene Sim Chief of Staff - Ms Romy Tincopa Program Director Peru Mr Park Jonghan Program Director Korea Mr Andrew Lloyd Program Director Australia Ms Joan A Alberto Program Executive - Ms Sandra Koh Receptionist - Project Management Unit (PMU) The first project session for 2014 commenced in March. A total of 125 concept notes were received and 27 received in-principle approval to progress to the project proposal stage. This represents a 22 per cent approval rate, which compares to an average approval rate of 55 per cent over last 5 years. Multi-year Project Pilot The project approval phase of the multi-year project pilot finished in mid-2013. A total of 12 multiyear projects have been funded under the pilot. All projects are now being implemented, with the final project due to be completed in 2018. Members agreed that a mid-term review of the pilot phase be commissioned by the Secretariat in 2014. The Terms of Reference for the review were agreed at BMC1. Evaluations and Impact Assessments A consultancy commissioned by the Secretariat on developing a framework for undertaking evaluations and impact assessments of APEC projects was completed in mid-2013. The findings were presented at the BMC2, 2013 meeting in Medan where BMC agreed to implement the evaluation framework. Work to implement the framework is continuing, and the Secretariat updated BMC1, 2014 on progress. The Secretariat has made amendments to existing templates to capture information on participants and capacity building impacts more effectively. A system to 5
collate participant information for future evaluations is being developed, as is an indicative pipeline for potential APEC project evaluations planned for 2014-2015. Project Database The design and upgrade of the APEC Project Database was finalized with all project records since 2006 (concept notes, proposals and monitoring reports) uploaded. The system is a comprehensive repository of all project records and is accessible to all members, through the APEC website. Policy Support Unit (PSU) In March 2014, the PSU commenced the annual survey of APEC members and committees/fora on projects completed in 2013. The exercise is still in progress. The PSU Annual Report for 2013 which includes the audited financial statements will be available in May after the Board s approval. Connectivity Blueprint APEC Senior Officials at SOM1 2014 tasked the PSU with drafting the APEC Connectivity Blueprint. In line with this mandate, the PSU embarked on a request for information exercise from March to April 2014 to gather information on ongoing and future connectivity-related initiatives from APEC members and concerned APEC committees/fora. The PSU is also organizing the SOM Symposium on Connectivity Blueprint which will take place on 12 May in Qingdao, and will submit a summary report of the symposium to SOM Friends of the Chair (FotC) Connectivity who will be convening a day after. Economic Trends In April, the first APEC Economic Trends Analysis report for the year with the theme Innovate for a Better Future with Sustainable Growth was published. The report was widely presented and disseminated through various platforms, namely at ABAC1, ABAC2, CTI1, EC1, Finance Deputies, PPSTI and TWG meetings; at a seminar organized by the Singapore APEC Study Centre; and at a media briefing to Foreign Correspondents Association in Singapore. The first trade monitoring report for 2014 entitled Key Trends and Developments Relating to Trade and Investment Measures and Their Impact on the APEC Region will be submitted to the Ministers Responsible for Trade (MRT) meeting on 18-19 May 2014. In addition the PSU is currently working on: For CTI Perceptions in the Use of NTMs in the APEC Region Comprehensive Analysis on Enhanced Resiliency of Cross-Border Value Chains (Phase 1: Quantitative Analyses of Value Chain Risks) Voluntary Standards and Regulatory Approaches in Advertising in APEC Economies (Issues Paper) For SFOM Asia Region Funds Passport: A Study of Potential Economic Benefits and Costs For SMEWG Integrating SMEs into Global Value Chains - Policy Principles and Best Practices (Issues Paper) For the most up-to-date monthly work program and soft copies of the PSU s reports and publications, please visit: www.apec.org/about-us/policy-support-unit/psu-products- Publications). Communications and Public Affairs Based on the study conducted by Burson-Marsteller, the Communications and Public Affairs Unit drafted a strategic plan for 2014 2016 for consideration by SOM in Qingdao. CPAU continues to carry deliver tactical result with a view to creating a steady drumbeat of activity: Speeches Between 1 February and 30 April 2014, Dr Alan Bollard delivered remarks to: New Zealand - China Council, Singapore 6
Temasek Foundation Centre for Trade and Negotiations, Singapore US-ASEAN Business Council Delegation, APEC Secretariat, Singapore ABAC Delegation, APEC Secretariat, Singapore OECD Conference on International Regulatory Cooperation, Paris, France New Zealand Institute of International Affairs, Victoria University Wellington, New Zealand Op-eds An op-ed entitled Reducing shock to businesses after a disaster was written by the APEC Emergency Preparedness Working Group Co-Chairs and published in the Japan Times on 24 March 2014. Media Interviews, News Conferences and Briefings About 8 media interviews were conducted between 1 February and 30 April with organisations such as BBC, Bloomberg, CNBC, Channel News Asia, China Central Television and The New Zealand Herald. A media briefing hosted in coordination with the Singapore Foreign Correspondents Association was held at the APEC Secretariat on APEC China 2014 priorities and economic trends on 31 March 2014. News Releases Eleven news releases were published between 1 February and 30 April 2014. APEC Bulletin Articles Two APEC Bulletin have been issued on a monthly basis highlighting APEC success stories. These have also been published in relevant media. APEC Bulletin Month Published in Media Paperless Trade Speeds Up Feb 2014 Supply Chain Asia Magazine May/June issue Trade Preparing SMEs for Disasters Mar 2014 Singapore Business Times/SME Inc possibly working on feature story. Chinese Taipei APEC Study Centers Consortium newsletter. APEC Secretariat Interviews with Leaders Two sit-down interviews were conducted with New Zealand Prime Minister John Key and Papua New Guinea Prime Minister Peter O Neill. Social Media and Infographics From 1 February until 30 April 2014, CPAU created the following infographics for use in social media, brochures, the website and presentations: APEC is Helping Reduce Costs for Importers and Exporters APEC at 25 Years SMEs in APEC Economies In February 2014, CPAU re-named APEC s Twitter handle from @ followapec to @APEC for better branding and positioning on Twitter. In March 2014, the Executive Director of the APEC Secretariat, Dr Alan Bollard, launched his own Twitter account @Bollard_APEC managed by CPAU to help amplify APEC s messages on social media. This account will help complement APEC s other social media pages on Facebook, Twitter and LinkedIn. APEC Facebook followers are currently at 8,174; Twitter followers at 3,311; and LinkedIn at 508 followers as of 22 April 2014. CPAU provided support for members: Processed a total of 99 publications from all working groups and PSU, from the period spanning 1 January 2013 to 30 April 2014. 7
Re-launched the Android version of the APEC Glossary App in April 2014 to provide regular updates to the glossary quiz and fix known bugs. Created Host Economy Communications Guidelines for consideration by SOM 2. Participated in 3 US-ATAARI-funded workshops to build capacity for incoming hosts in Peru, including a capacity building workshop on communications for incoming host economies. APEC Technical Assistance and Training Facility The US-APEC Technical Assistance to Advance Regional Integration (US-ATAARI) works closely with the APEC Secretariat to implement a range of activities designed to strengthen the APEC Secretariat as a customer-driven institution. From February 2014, US-ATAARI s activities include: Providing support to the SCE strategic planning process, including providing comments on draft strategic plans and meeting with Secretariat Program Directors. Working closely with the IT Unit and the selected vendor, to prepare for the launching of the IntrAPEC, an intranet for the Secretariat. APEC Secretariat operating units are populating the portal with information. US-ATAARI has provided training to administrators on how to maximize use of IntrAPEC. It is anticipated to be officially launched in June 2014. Working with the Finance Unit, engaged an expert to review and make recommendations on aspects of APEC financial processes, broadly in line with the industry s best practices and Singapore Financial Reporting Standards. US-ATAARI is supporting the work, with terms of reference for review being developed. The report is due by the end of June 2014. 8